21.04.2021:EUR may continue losing in value. Outlook for EUR/USD and GBP/USD

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In Europe and the US, there are a lot of concerns about a rapid inflation rise. However, in the UK, the situation is opposite.
There, inflation advanced just to 0.7% from 0.4% that is below the forecast of a 0.8% rise. In other words, at least now, the UK will hardly face the risk of an inflationary spiral. Of course, this is a positive factor.
However, the British pound remained stagnant despite such news. This could be explained by the unprecedented growth on Friday and Monday. In fact, the pound sterling has no room to increase, and the inflation data allowed it to trade at the current levels. At the same time, the euro is confidently falling. That is why the British currency may also follow its partner. It is likely to happen at the beginning of the US trade.
Let us take a look at the trading charts. Yesterday, the pound/dollar pair approached the psychological level of 1.4000. After that, it slowed down and dropped.
Notably, the level of 1.4000 is a point where quotes usually change their trends. On the trading chart, we can see that the support level coincides with the recently broken peak of 1.3917 logged on April 6. If the pair downwardly breaks this level, the volume of short positions may increase, thus leading to a decline in the pound sterling to 1.3850-1.3800. (*)
According to the alternative scenario, the price may bounce from 1.3917. In this case, traders could open buy positions above 1.3950.
The euro/dollar pair made an attempt to change the structure of the correctional movement within the range of 1.2349-1.1703. However, it slowed down and returned to the psychological level of 1.2000.
Analyzing the trading chart, we can see that the pair has just begun a decline from the high of 1.2071. If the volume of short positions grows and the price fixes below 1.2000, it may slide to 1.1950.

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